Dear Friends and Neighbors,
There have been some major developments down here in Juneau and I wanted to be sure you were kept in the loop.
House Organization
I am pleased to announce that last Thursday, a coalition was formed in the House and Bryce Edgmon was elected as Speaker for a second term. Although we are still adding to our numbers, coastal Alaska is strongly represented in both leadership positions and core membership. The past month has been difficult for all Alaskans, but I can confidently say that taking the time to get this right was worth it.
As I write this, committee assignments are still being decided. By the time you read this, however, those negotiations should be concluded, and committee work on the budget underway. We know that we have a rural Speaker and, without getting ahead of organization, I am confident that I will retain my position in House Leadership, as well as the chair of the Fisheries Committee and co-chair of the House Transportation Committee. Additionally, I will serve as Vice-chair of Legislative Council, as well as a sitting member of the Rules, Judiciary, Labor and Commerce, and Ethics Committees.
We have a long year ahead with many battles on the horizon; however, we are now fortunate to have a House Majority consisting of Republicans, Democrats, and Independents that can and will protect our coastal priorities. This could not have come at a better time as the Governor’s proposed budget, released last Wednesday, was all I feared it would be.
The Governor’s Budget
Ferry Service: I won’t sugar coat it. For all intents and purposes, the Alaska Marine Highway System (AMHS) is being eliminated under the Governor’s proposal. The proposal would cut $95.6 million of the $140 million in AMHS’s budget, which is a 68 percent reduction. This level of funding would only be enough to operate our ferry system from July 1st through October; at that point, there will be no service until the following July.
OMB further explains in their budget analysis that they will contract a consultant to “identify potential reductions of the State’s financial obligation and/or liability as they relate to the Alaska Marine Highway System (AMHS). The project will include an analysis of options available for reshaping the system, such as through a public/private partnership, and a determination of the various options’ feasibility, with targeted implementation by July 1, 2020.”
As if this weren’t enough, the proposal also removes the State’s $25 million in match for the design and construction of the M/V Tustumena, transferring it instead to federal highway match. The next line of the same bill then transfers the remainder of the Alaska Marine Highway Fund and the Alaska Marine Highway Vessel Replacement Fund at $37.5 million for “divesting the Alaska Marine Highway System ferries and terminals.” The marine highway fund is for unexpected breakdowns that occur every year and zeroing it out puts even a 4-month schedule at risk. Further, the vessel replacement fund is also being cut to zero. Without the funding for a new Tustumena or a vessel replacement fund itself, a large part of our district is left without a cross-gulf ferry even if the system were successfully privatized.
Aside from cutting ferry service to practically non-existent levels and removing the emergency and replacement funds, the administration’s plan is to eliminate the state’s responsibility to operate a marine transportation system entirely. A public private partnership is a good idea that could create many efficiencies in the way AMHS operates, but this is putting the cart before the horse. A bill exploring this concept is moving forward in the House currently, but it will take years to fine tune and implement. Frankly, the administration isn’t taking a position on that legislation and I hope that the governor chooses to engage in that discussion rather than pursuing this reckless, haphazard plan. Eliminating our only highway with the hope of instituting a public-private partnership at a later date doesn’t work for me or my constituents.
The State has an obligation to provide basic transportation infrastructure to rural Alaska just as it does urban areas and I intend to ensure that the administration lives up to its responsibility.
Fish and Game: The Department of Fish and Game (ADF&G) Commercial Fisheries Division received a far lesser cut than expected at $1.6 million. However, even a cut of this level will have a negative impact on fishing opportunities in our area. We worked hard last year to increase fishing opportunities and you have my word that I will fight this cut tooth and nail. $1.8 million was cut from the statewide Chinook Salmon Research Program and $1 million was cut from the Cook Inlet Stock Assessment, neither of which seem wise given the current status of both areas.
Although the ADF&G budget itself didn’t take the hit I expected, the fishing industry is targeted in different ways. SB 63, sponsored by the governor, seeks to remove municipal revenue sharing from the fisheries landing and business taxes. More than 11 percent of the city of Cordova’s budget is funded with fish tax revenue and robbing Peter to pay Paul only shifts a State burden to already struggling local governments.
We do not yet have confirmation, but there are substantiated concerns that the administration plans to privatize the Commercial Fishing Revolving Loan Fund and absorb the Commercial Fisheries Entry Commission (CFEC) into ADF&G. The revolving loan fund is one of the few tools Alaska has to incentivize young residents to enter and remain in commercial fisheries and it is clear that fishermen across the state do not support CFEC losing its independence.
Education, Medicaid, and Others: Other noteworthy proposed cuts are the $280 million reduction to K-12 education, $270 million from Medicaid, $155 million from the University of Alaska, and the elimination of the Power Cost Equalization Fund. These cuts are no less impactful, but due to space constraints, we will have to delve into those in a future update.
Despite the Administration’s campaign promises, this budget clearly targets rural Alaskan communities unfairly. How can we be open for business without jobs, ferry service, revenue sharing, energy assistance, a good education system, or healthy fisheries?
Silver Lining
Luckily, as the chair of Fisheries and co-chair of Transportation, I will have a say in any policy affecting fishing or ferries. I will also sit on the budget subcommittees for both of those departments and will be in an ideal position to hold the line on those budgets.
Another bright spot on this cloudy horizon is that these are only proposals by the governor, ones which unify rural legislators. The legislature is ultimately the appropriating power, underscoring the urgent need for solidarity among coastal legislators. I am very grateful that we were able to form a majority in the House that is willing to fight for our priorities.
Disaster Relief Funding
On an unrelated topic, I reached out to Sen. Murkowski’s Office a few days ago for an update on the 2016 pink salmon disaster relief funding. NOAA is expected to give its final seal of approval on the state plan in the next week or two, then the funding would go to the Pacific States Marine Fisheries Commission. My staff has a conference call setup with the Senator’s office and the commission to discuss the ins and outs of how you can apply and when. Please remain patient and we will be sure to keep you in the loop. If you would like to be added to our disaster relief email update list, please contact my fisheries committee aide, Matt Gruening, at matt.gruening@akleg.gov.
Remember, I work for you, so please reach out to me with your thoughts on these and any other issues that are important to you and your family.
Sincerely,
— Rep. Louise Stutes
